Fitch rates Regal notes B-

Fitch Ratings said it assigned a B-/RR6 rating to the $100 million of additional 9 1/8% senior notes due 2018 issued by Regal Entertainment Group.

The outlook is stable.

Proceeds of the notes are expected to be used to redeem a portion of Regal Cinemas Corp.'s senior secured credit facility and for general corporate purposes.

Regal's B+ issuer default rating was also affirmed and Regal Cinemas's senior notes were upgraded to BB/RR2 from BB-/RR3, the agency said.

The upgrade on Regal Cinemas's notes reflects the notes' improved recovery prospects to an expected 85% recovery from a 67% recovery, following the offering and partial redemption of the senior credit facility, Fitch said.

The ratings reflect Regal's size and position as the largest domestic movie exhibitor, solid geographic diversity and relatively stable operating performance, as well as the risks associated with increased competition from at-home entertainment media, Fitch said.

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